Terms and Conditions For all RS Water Holdings Purchases, Rentals and Deliveries

DEFINITIONS: Customer is any Residential, Commercial or Industrial entity using services or products provided by the Dealer. The Dealer is RS Water Holdings LLC, doing business as Culligan of DFW, Culligan of Houston, Culligan of Brazosport, Culligan of Weatherford and Culligan of Denison, or any other holdings of RS Water Holdings LLC. The Agreement is the Sales or Rental Contract or Commercial Quote received by the customer from the Dealer, with the following Terms and Conditions incorporated therein by reference.

1. ACCEPTANCE. By signing the first page of this Agreement, you accept the Culligan or non- Culligan equipment and/or services described in the Agreement (“the Services”) and agree to be bound by the following terms and conditions. The terms of the Agreement constitute the entire Contract between you and the Dealer regarding the sale, rental, servicing and maintenance of your equipment and may be amended only by a written agreement signed by both you and Dealer. Any terms that add to, vary from or conflict with these terms and conditions or this Agreement are void. No promise, statement or representation by any of Dealer’s employees, agents, subcontractors or representatives will relieve you of any obligations you undertake in this Agreement or will be binding upon Dealer unless it appears in this Agreement. This Agreement supersede all verbal promises, as well as any other written agreements.

2. TERM. Any equipment purchased or rented by you, or services provided to you in this Agreement are for the “Term” stated on the front of the Agreement, or if no Term is listed, on a month-to-month basis. Dealer may change the rental or service rate once per year, without notice to cover increased cost incurred by the Dealer to provide ongoing maintenance and service. If you have signed up for the Privilege Program (the “Program”), such Program begins on the Agreement date and continues for a period of two (2) years (the “Term”) and shall automatically renew for a period of (1) year so long as you make timely payment to Dealer of the amount shown on the invoice issued to you by Dealer for the Term or any Subsequent Term.

3. TERMINATION AND DEFAULT. Except as it applies to the sale of products or equipment to you, you may terminate this Order upon payment of all unpaid payments remaining in the term of the Agreement, any applicable cancellation charge (except as provided in the NOTICE OF CANCELLATION) and return any equipment rented to you. Dealer may terminate this Agreement for any reason by giving you 30 days’ prior written notice; in such case, Dealer shall be entitled to return of any rental equipment, all unpaid payments up to the date of removal of the rental equipment and any reasonable cost, including attorneys’ fees incurred by Dealer in collection of all overdue payments and repossession of the rental equipment. If you fail to make the rental equipment available to Dealer for removal from your premises upon termination of this Agreement, or if you fail to tell a new owner or occupant of the property that you do not own the rental equipment, you agree to pay Dealer its fair market value upon demand. Should you fail to pay Dealer any amount when due or fail to allow Dealer to perform the Services as described herein, you shall be in default of your obligations under this Agreement and Dealer shall have no further obligation to you hereunder, including but not limited to the performance of any Services. Should you move out of the Dealer’s service area, Dealer may release you from the remainder of the Contract term under the following conditions: (a) must be current on all payments; (b) provide Dealer with a minimum of 30 days’ written notice delivered via Mail or Email; (c) provide Dealer with a (i) closing statement or lease document on the new home or office, (ii) water or electric bill showing the customer’s name and new address; (d) payment of the current uninstall fee for the equipment; and (e) return of the equipment to the Dealer in good working order (allowing for normal wear and tear). If a customer is moving inside the Dealer’s service area, Dealer will move and reinstall the equipment at the new location. Customers will pay a reinstall fee based on a site survey of the new location and what is needed to reinstall the equipment.

4. SERVICES. During the Term, Dealer will undertake the Services at such intervals or in such manner as set forth on the first page of this Agreement and, upon your request, will undertake the warranty Services. If you have Culligan Connect connected to your equipment and that notifies us of an issue with your equipment, we will attempt to contact you at least once at the phone number provided on the front of this Agreement. Dealer is not responsible for the continuous operation of Culligan Connect with the homeowners WIFI network. Should Culligan Connect fail to communicate with us, or should we be unable to reach you after receiving communication through the Culligan Connect, you must reach us to arrange any necessary service. In addition, you understand that the Services do not include repairs due to breakdown caused by your use of the equipment in a manner other than that which was intended; your willful neglect, misuse or damage of the equipment, or by service or repair of the equipment, including repairs to accessories, the electricity supply or your pipes and plumbing system by anyone other than Dealer. Should you request any repairs outside the scope of this Agreement, and should Dealer agree to make such repairs, you will pay Dealer for such repairs at Dealer’s regular and customary rates. Should you request Services to be performed outside of Dealer’s normal business hours, you will pay Dealer’s standard overtime rates and/or minimum charges for labor. Dealer will schedule the Services in as timely a manner as is practicable and will provide the Services within a reasonable period after it receives actual notice from you that any Services are required. If Dealer is required to make additional trips to the equipment installation site because the equipment is inaccessible, then Dealer, at its option, may charge its prevailing special trip fee. At Dealers option, Dealer may designate an agent, who may or may not be an employee of Dealer, to perform the Services. It will not be the responsibility of Dealer to replace consumable items, including but not limited to batteries or light bulbs, or any non-functional parts of the equipment, such as cabinetry, trim and decals. If you call Dealer for a repair, and no problem with the equipment is detected, you will be charged Dealer’s customary and regular rates for a service call. If you signed up for the Privilege Program for your softener: Once a year upon your request, you will be entitled to a free 28-point inspection on any Culligan softening equipment covered under the Privilege Program. If you sign up for the Privilege Program for your filtration equipment, when needed* you will be entitled to a service call for cleaning, sanitization and filter change, a free water test and a battery for the TDS indicator light. If you require salt delivery services more than four times per year, you will be charged Dealer’s then applicable delivered price for salt. If you make your equipment available during any salt delivery, we will inspect for functionality.

5. ENTRY. You understand that to perform the Services, Dealer must have access to the equipment. By signing this Agreement, you authorize Dealer at mutually convenient times to (a) enter your home or premises to install and service the equipment and (b) do work on, or make changes to, your premises if installation or service of equipment is part of this Agreement. If you have rental equipment, you authorize Dealer to enter the premises when this Agreement is terminated and remove the equipment.

6. PAYMENT. You agree to promptly pay to Dealer all amounts due under this Agreement including all taxes, fees and other charges. If you fail to do so, you agree to pay all the cost of collections proceedings including the cost for reasonable attorneys’ fees. Should you pay Culligan with a check or pre-authorized debit transaction that is returned unpaid, Culligan may charge you with a RETURNED PAYMENT CHARGE OF TWENTY-FIVE DOLLARS ($25.00), each time that your check or pre-authorized debit transaction is returned unpaid. Interest at the ANNUAL PERCENTAGE RATE OF 18% (1.50% per month) or the highest rate permitted by law, will be imposed on all amounts that are more than 30 days past due. Finance charges are imposed on the first of the month on all past due amounts. You will avoid finance charges by paying each invoice in full before the first of each month. The dealer will apply your payment first to pay any outstanding finance charges, with the balance applied to the principal. All payments will be applied to the oldest unpaid amount. Unless otherwise noted in the contract all payments are due on delivery of product or service. Customer is solely responsible for requesting any/all refunds for any product or service provided under this Agreement within 90 days of purchase or service rendered. Any refund or credit not requested within 90 days of billing are forfeited by the customer. All Dealer approved refunds will be paid by check via first class mail or the customer can pick up the check from the Dealer’s office upon request to the local Dealer. The Dealer will process the approved refund within 30 days of the approval. Before any refund is made, any unpaid balance on the customer’s account will be applied from the refund amount. Customers renting equipment from the Dealer will receive a Personal Property Tax Fee yearly not to exceed 3% of the yearly rental rate. (monthly rent X 12 months) or $5.00 whichever is greater.

7. SECURITY DEPOSIT. All security deposits will be held by the Dealer as security for your full compliance with the terms of this Agreement. They will not accrue interest and will be returned to you within 30 days of termination of this Agreement if you have fully complied with the terms of this Agreement.

8. PLUMBING SYSTEM; WATER QUALITY. The installation of the equipment does not include any repairs to your plumbing system. Replacement of gate valves or draining down of pressure tanks, for example, are not Services that are included in this Agreement. Anything that would be considered a repair to your plumbing system will be billed as an extra expense at Dealer’s customary rates. Dealer reserves the right to decline to make repairs and to refer you to a licensed plumber. If your water quality, water consumption or flow rate change, or if maintenance of the equipment is affected by external factors such as sand, sediment, pressure or an inadequate water supply, additional equipment or specialized salt may be required to assure performance of the equipment. At your request, Dealer will furnish such equipment or salt to you at Dealer’s current rate. The delivery, installation and repair of any such equipment or salt shall be outside the scope of this Agreement.

9. MAINTENACE: RESPONSIBLITIES. The equipment must be maintained according to manufacturer instructions, including replacement of filters and other components and regular sanitary maintenance of bottled water coolers. You are responsible for the following maintenance of the equipment: repair of damage due to your misuse or negligence, humidity, condensation, freezing, fire, electrical power spikes or other catastrophe; loss or damage due to theft or causes beyond Dealer’s control; and maintenance of an adequate supply of salt and/or chemicals. If the equipment requires maintenance or repair for which you are responsible, you agree to pay for the replacement or repair by Dealer, at Dealer’s prevailing rates. If you sign up for the Privilege Program or rent equipment, Dealer is responsible for repairing damage to the equipment covered under the Privilege Program from ordinary use if the equipment is not functional without such repairs, but only if you notify Dealer immediately upon discovering such damage. Any of the following acts will be considered to have caused unreasonable or excessive wear and use of the equipment; repair or alteration by unauthorized persons; relocation by others from the original installation site; intentional or negligent damage; or damage beyond Dealer’s control.

10. SERVICE RESTRICTIONS. The standard service charge does not include setting time clocks or emptying salt into the salt barrel/brine tank. If you use salt that is not purchased from Dealer in this equipment and a service call is required because the salt is not technically satisfactory for use with this equipment, you agree to pay the cost of the service call to correct any issues arising therefrom. Services or maintenance on or to the equipment provided under this Agreement will be provided by Dealer without charge only during normal business hours. Service that is requested and performed outside of normal business hours will, if Dealer chooses, be billed to you at applicable service rates.

11. PROGRAM FOR EXISTING EQUIPMENT. If any equipment has been installed for more than ninety (90) days but less than twelve (12) months prior to entering this Agreement, you will pay the start-up fee set forth on the initial page to enroll in the Privilege Program. You will also make the first monthly payment described in this Agreement, and the Services will commence in accordance with the schedule described in this Agreement, including the regular service call upon the second anniversary of the installation of the equipment. If the equipment has been installed for longer than twelve (12) months, you must schedule a service call and permit inspection of the equipment to enroll in the Program. You will be charged a fee for such a service call. If you fail to enroll in the Privilege Program after such service call, the service call fee will not be refundable. Any necessary repairs identified by the Dealer technician during inspection of the equipment will be performed by Dealer and is a condition to Dealer’s willingness to enter into a Service Agreement with you. Such repairs will be charged at Dealer’s customary rates, but Dealer will apply the inspection fee to any repair costs. Upon completion of and payment for such repairs, you will pay the first payment described in this Agreement, and the Services will commence in accordance with the schedule described in this Agreement. You are not eligible to enroll in the Privilege Program if your equipment has been installed for Seven (7) years or more.

12. WARRANTY; LIMITATION OF LIABILITY. Dealer warrants that the equipment provided to you under the Culligan brand is Culligan equipment. If you move to a new location, your ability to have the Culligan equipment removed and reinstalled depends on the plumbing that exists in the new location. Dealer warrants any equipment and any other materials that are provided under this Agreement against defects in material and workmanship for the period specified in the manufacturer’s limited warranty, or as otherwise specified in this Agreement. Dealer’s obligation under this warranty is limited to repair or replacement (at Dealer’s option) of equipment and materials provided by Dealer that Dealer reasonably determines are defective, as long as you notify Dealer within a reasonable period of the alleged defect and the Culligan equipment and materials furnished under the Agreement are (a) used in a manner that strictly conforms to the written operating instructions furnished by Dealer and (b) with supplies, system elements or components that are technically satisfactory for use with Culligan products. This warranty will not apply if the equipment or materials have been modified, repaired or tampered with by anyone who is not authorized by Dealer or if the equipment or materials have been subject to negligence or misuse. If you have purchased equipment with the Agreement and you have requested Dealer to do so, Dealer has made available for your inspection a copy of the applicable warranty prior to purchase, which Dealer will provide when the equipment is installed. All Warranties are available on the Dealers website. ALL EQUIPMENT IS SOLD ON AN “AS IS,” “WITH FAULTS” BASIS. DEALER IS NOT RESPONSIBLE OR LIABLE FOR ANY DIRECT OR INDIRECT DAMAGES, EXPENSES OR LOSS CAUSED BY ANY UNAUTHORIZED REPAIR, ALTERATION OR MOVEMENT OF THE EQUIPMENT; FOR ANY DIRECT OR INDIRECT DAMAGES, EXPENSES OR LOSS CAUSED BY COOLER EQUIPMENT OR BOTTLES OF WATER BEING PLACED ON WOOD FLOORS OR DRINKING WATER SYSTEMS INSTALLED UNDER SINKS; OR FOR WATER TREATMENT EQUIPMENT PLACED IN AREAS THAT COULD CAUSE DAMAGE TO HOME OR OFFICE. UNDER NO CIRCUMSTANCES IS DEALER RESPONSIBLE OR LIABLE FOR ANY LOSSES, REPAIRS, MEDICAL EXPENSES, LIVING EXPENSES OR ANY OTHER FUTURE OR CURRENT EXPENSES DIRECTLY OR INDIRECTLY RELATED TO OR NECESSITATED BY MOLD, FUNGUS, RUST, CORROSION OR OTHER BACTERIA OR ORGANISMS HOWEVER ARISING. 

EXCEPT AS SPECIFIED IN THIS SECTION 12, TO THE EXTENT PERMITTED BY LAW, ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED. TO THE EXTENT IMPLIED WARRANTIES CANNOT BE DISCLAIMED BY APPLICABLE LAW, ALL IMPLIED WARRANTIES ARE LIMITED IN DURATION TO THE MINIMUM PERIOD REQUIRED BY LAW AND ARE LIMITED IN SCOPE TO THE PURPOSES SPECIFIED IN THE MANUFACTURER’S LIMITED WARRANTY AND THIS AGREEMENT. YOU ASSUME ALL LIABILITY FOR CLAIMS, INJURY AND/OR DAMAGE ARISING OUT OF POSSESSION, USE OR CONTROL OF THE EQUIPMENT AND AGREE TO CARRY HOMEOWNERS OR BUSINESS INSURANCE TO COVER INJURY AND DAMAGE TO PERSONS, REAL OR PERSONAL PROPERTY. ALL CLAIMS OF PERSONAL INJURY AND/OR DAMAGE TO REAL AND PERSONAL PROPERTY MUST BE FILED WITH THE CUSTOMER’S INSURANCE COMPANY, NOT THE DEALERS.

13. INDEMNITY. You shall pay, defend, indemnify and hold harmless Dealer and its employees, agents, subcontractors, authorized representatives, franchisees, franchisor, subsidiaries and affiliates (collectively, the “Dealer Parties”) from and against any loss, damage, liability, claims, suits, attorneys’ fees and costs arising out of or related to this Agreement or the operation of the equipment, including without limitation damage to property or injury or death of persons, except to the extent attributable to the negligence of the Dealer Parties. Your indemnity obligation shall survive the expiration, termination or cancellation of this Agreement.

14. REMEDIES; LIMIATION OF LIABILITY. Your sole and exclusive remedy against the Dealer Parties for any disputes, claims, questions or disagreements arising out of or related to this Agreement deficiencies in Dealer’s Services to be provided hereunder (each a “Claim”) shall be for Dealer either to correct the defective work or refund to you an amount as determined in accordance with this Section 14 to reasonably compensate you therefore, such amount at Dealer’s sole and exclusive determination. The liability of the Dealer Parties with respect to any Claim, and regardless of the legal theory upon which a Claim is based, shall not exceed your actual damages or the price paid by you for the Services during the term set forth on the first page of this Agreement (“the Term”) or the amount invoiced to you for any Renewal Term, whichever is less. In no event shall you or the Dealer Parties be liable to each other or any third party for incidental, consequential, special or punitive damages (including but not limited to personal injury or property damage). The Dealer Parties shall not be liable for any loss suffered by you because of not being able to use the equipment or any loss other than the repair or replacement cost of the equipment. No Claim may be asserted against any of the Dealer Parties unless the injury, loss or damage giving rise to the Claim occurs during the Term and no action thereon may be instituted or maintained unless you initiate it within two years and one day after the date that the cause of action first accrues. These limitations apply whether the alleged liability is based on contract, tort, strict liability or any other theory.

15. ASSIGNMENT. You may not assign this Agreement unless Dealer provides its written consent. Dealer may assign this Agreement at any time without notice to you.

16. GENERAL TERMS. This Agreement is not an insurance contract. All notices, requests, demands and other communications under this Order shall be in writing and shall be deemed duly given upon confirmation of delivery. Written notification may be made to you at the address set forth for you on the first page of this Agreement or to Dealer as follows: c/o Culligan, 3201 Premier Dr, Suite 300, Irving, Texas 75063, Attention: General Manager, or to such other address as is designated by either you or Dealer from time to time in writing in accordance with this Agreement. If any of the provisions of the Agreement are held to be invalid, illegal, or unenforceable, said provision shall be modified to the minimum extent necessary for enforceability. If it cannot be so modified it shall be deemed stricken from this Agreement and the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired. The performance of any condition or obligation imposed on a party under this Agreement may be waived only in writing by an authorized official of said party. Headings and subheadings herein are for the convenience of the parties only and no special meaning will attach to the headings. This Agreement will be deemed made in and governed by the laws of the State of Texas, without application of its principles regarding conflicts of law. Dealer shall not be responsible for its failure to perform its obligations under this Agreement in any instance which such failure is caused in whole or in part by events beyond its reasonable control. The terms in Sections 5, 6, 12, 13, 14, 15, 16 and 17, 19 and 20 shall survive the expiration or termination of this Agreement to the extent permitted by Law. The warranty contained in Section 12 above gives you specific legal rights, and you may also have other rights that vary from state to state.

Purchase Money Security Agreement for Customer Purchase Agreement Only: To secure all your obligations under this Agreement, including any amount due on returned checks, you grant us a purchase money security interest in the Equipment and the proceeds of the Equipment (for example, any money or property payable to you for the loss, destruction, or sale of the Equipment, including insurance proceeds). We have all remedies provided to a secured creditor under the law.

17. ALTERNATIVE DISPUTE RESOLUTION. You and Dealer shall follow a process of alternative dispute resolution (“ADR”) for any Claims. If you believe that you have a Claim, you must timely send to Dealer a letter stating the nature of the Claim and a proposal for resolving the Claim (the “Notice”). If Dealer believes that it has a Claim against you, it must send you a Notice of Claim. You and Dealer will then attempt to resolve the Claim within sixty (60) days of delivery of the Notice. If you and Dealer are unable to resolve any Claim, it shall be resolved through arbitration administered by AAA or, if AAA is not available, an equivalent nationally recognized alternative dispute resolution facilitator, in accordance with the arbitration entity’s rules. If you are not a residential consumer, the arbitration shall be conducted in a Texas county of Dealer’s choosing. If you are a residential consumer, the arbitration shall be conducted in the county where the equipment was located at the time the Claim arose. The Claim shall be decided before a single arbitrator is appointed according to the arbitration entity’s rules. Judgement on any award rendered by the arbitrator may be entered in any court of proper jurisdiction in accordance with the laws of that court’s jurisdiction. The prevailing party shall be entitled to recover all costs and expenses, including legal and expert fees incurred by that party, including all expenses incurred in confirming or successfully defending against confirmation of the arbitration award. Except as may be required by law, neither party nor any arbitrator may disclose the existence, content or results of any arbitration award without the prior written notice of all parties. Nothing contained within this ADR provision shall act to revive Claims that would otherwise have expired or lapsed due to the passage of time or change in applicable law. In the event either party fails to follow this ADR provision, the other party may seek a judicial order compelling adherence to this provision, and the non-prevailing party shall pay all of the prevailing party’s attorney’s fees and costs incurred in the judicial proceeding.

18. 30 Day Satisfaction Guarantee. If for any reason, within 30 days following the date of Purchase, you decide that you do not wish to continue use of the Equipment, you may notify us in writing that you wish to terminate your use of the equipment. For your notice to be effective under the 30-Day Satisfaction Guarantee, it must be in writing and received by us prior to midnight on the 30th day following the date of delivery of the equipment. Notices may be delivered by personal delivery, mail, email or fax to our address or fax number listed on the Agreement. Upon timely notice of termination, we will retrieve the equipment and all your and our respective obligations under this Agreement will terminate as of the date we retrieve the equipment. We will return to you any payments, less (a) permit and installation charges noted on the Contract or if not called out on the contract, an amount not to exceed $1,200.00 to reimburse Dealer for any permits and installation costs you have made to us under this Agreement, assuming the equipment is in as good a condition upon retrieval as it was when installed, excepting normal wear and tear; (b) applicable removal fees due at the time of termination of service; Based on current labor rates. and (c) any service or repair required to be made to the equipment because of your negligence or misuse or the negligence or misuse of others while the equipment was in your possession. Any such charges which exceed any applicable refund shall be due upon demand.

19. IMPORTANT NOTICE STATE OF TEXAS REQUIRED STATEMENT: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW (For Residential Properties Only referring to placing a lean on a property for non-payment)

20. THIS AGREEMENT IS SUBJECT TO CHAPTER 27 OF THE TEXAS PROPERY CODE: The provisions of that chapter may affect your right to recover damages arising from a construction defect. If you have a complaint concerning a construction defect and that defect has not been corrected as may be required by law or by Agreement, you must provide the notice required by Chapter 27 of the Texas Property Code to the Contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the Contractor, you must provide the Contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code (For Residential Properties Only). 

*When indicated filter quality is below our standards, determined by water testing or monitoring system or Smart equipment.